Why Is Crypto Down Today and Will it Rise Again? Reasons and What Next
The global crypto market is logging another fall today, as major tokens such as Bitcoin, Ethereum, XRP, and Solana all enduring price losses. Overall market capitalization is at $3.58 trillion, losing 1.7% over the past 24 hours, with volume remaining strong at $104 billion.
As per CoinMarketCap, Bitcoin price went down by 2.64%, and it is trading at $105,794. Ethereum dropped by a greater percentage of 5% and is trading at $2,613. XRP went down by 4.32% to $2.19, and Solana dropped the most by more than 6%, currently trading at $162.88.
Source: CoinMarketCap
This precipitous decline in the cryptocurrency market seems to be driven by a mix of global economic data, regulatory feedback, and volatile trading.
Why is Crypto Down Today? Top Reasons
US GDP Dips: US GDP dipped by 0.2% during Q1 2025, while in the last quarter it had risen by 2.4%. This unexpected slowdown has scared investors. Consumer spending is weakening, corporate profits fell by $118 billion, and jobless claims are at a 30-month high. Inflation still sits at 3.6%, leaving the Federal Reserve in a tough spot. A possible recession could affect both traditional and digital asset markets.
James Wynn’s $99M Loss: One of the most well-known traders from the 2022 bull run, James Wynn, lost $99.3 million in a week using 40x leverage on Bitcoin bets that went wrong. His trades were so big that when he got liquidated below $105K, it triggered a wider sell-off. Another trader, 0x2258, had profited $17 million by backflipping Wynn's trades, revealing how volatile the market is.
Source: Lookonchain
Trump Tariff Decision: A U.S. court on Thursday reversed former President Trump's tariff policy, saying it was unconstitutional. The judicial twist has caused uncertainty in the trade world. While some of the tariffs have stuck for metals and autos, the majority were kept under wraps. Government officials and authorities' response has only led to fear in the market.
Spot Bitcoin ETF Outflows: Investors are also pulling money out of Spot Bitcoin ETFs, which added more pressure. According to SoSoValue, on May 29, there was a daily outflow of $358.65 million, showing that big players are stepping back. These ETFs hold $128.13 billion in assets, making up 6.07% of the total Bitcoin market cap.
Source: SoSoValue
Will Crypto Rise Again Today? Market Fear Grows, Eyes on Next Data
The Crypto Fear and Greed Index, which shows investor sentiment, has dropped to 60 (Greed) today, down from 74 yesterday and 78 last week, which was in the “Extreme Greed” zone. This shows how quickly the emotions change.
Some analysts take it for granted that over-anxiety leads to buy. But with additional economic data releases, such as GDP m/m and Core PCE Price Index, on the way, direction in the sector will be determined by how positive these figures are. If numbers don’t look good, more panic could hit the crypto space.
As uncertainty rises, crypto investors are being extra cautious. With volatility increasing and recession talks spreading, it’s hard to say if the recovery will be quick.
Disclaimer: This article is for informational purposes only and does not offer financial advice. Cryptocurrency markets are highly volatile. Always do your own research before investing.
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